Momentum indicators are turning flat, suggesting further range trading, probably in a range of 7.3380/7.3580. Upward momentum is beginning to fade; a breach of 7.3250 would suggest that 7.3700 is not coming into view, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Momentum indicators are turning flat

24-HOUR VIEW: "We highlighted yesterday that 'while downward momentum has not increased much, there is room for USD to test the 7.3320 level.' USD did not quite test 7.3320 and it traded in a 7.3350/7.3520 range. It closed largely unchanged at 7.3455 (-0.02%). Momentum indicators are turning flat, suggesting further range trading today, probably in a range of 7.3380/7.3580."

1-3 WEEKS VIEW: "We have held the view that 'there is room for USD to retest the 7.3700' since early last week. Yesterday (14 Jan, spot at 7.3410), we noted that 'upward momentum is beginning to fade, and a breach of 7.3250 (‘strong support’ level) would suggest that 7.3700 is not coming into view.' We continue to hold the same view."